Break-even quantity

Assignment Help Financial Management
Reference no: EM131444406

Consider a project with the following data: accounting break-even quantity = 11,500 units; cash break-even quantity = 10,000 units; life = six years; fixed costs = $200,000; variable costs = $45 per unit; required return = 10 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Break-even quantity

Reference no: EM131444406

Questions Cloud

Determine your pricing objectives : Our idea we have come up with is the Nanopatch (needless patch for vaccinations). This product hasn't been fully marketed yet, however we plan to be competitive in our marketing strategies for this project. We want to target Hospital and Clinics w..
Define proposed legislation for the supply : You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Your best estimates indicate that, based on current tax rates, the monthly market demand for telecommunication services.
How your target audiences media consumption will affect : Application of theory or practical examples given appropriate to context.Evaluation and critical analysis of the topic, synthesis of ideas/concepts, appropriate conclusions, justified recommendations.
Combined effect of changes in risk and return : A common stock has experience a simultaneous change in both risk and return. Required return has increased for 16% to 18%. Because of the change in stockholder expectations of future returns, the growth rate has also increased from 9% to12%. The divi..
Break-even quantity : Consider a project with the following data: accounting break-even quantity = 11,500 units; cash break-even quantity = 10,000 units; life = six years; fixed costs = $200,000; variable costs = $45 per unit; required return = 10 percent. Ignoring the ef..
Define whose demand is elastic and inelastic : There's a gas shortage in Gasland. You're presented with two proposals that will achieve the same level of reduction in the use of gas. Proposal A would force everybody to reduce their gas consumption by 5 percent.
What are the impacts of information technology : How is the concept of incremental analysis used in decision making? What does it mean when someone says "You get what you measured"? What are the impacts of information technology?
What is the financial break-even quantity : A project has the following estimated data: price = $40 per unit; variable costs = $28 per unit; fixed costs = $14,500; required return = 8 percent; initial investment = $24,000; life = four years. Ignoring the effect of taxes, what is the accounting..
Calculate the number of inventory days outstanding for ovhs : Ohio Valley Homecare? Suppliers, Incorporated? (OVHS) had $14 million in sales in 2009. Its cost of goods sold was $5.6 ?million, and its average inventory balance was $2.1 million. Calculate the number of inventory days outstanding for OVHS.

Reviews

Write a Review

Financial Management Questions & Answers

  Make the forecasts about the returns of stock

You make the following forecasts about the returns of a stock: in a recession (probability 40%) the stock's return is -6%, in a boom (probability 60%) the stock's return is 10%. What is the expected return for this stock? Total investment in stock A ..

  Required return on riskier stock exceed-on less risky stock

Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed that on the less risky stock?

  Maximum value for which share can be expected to trade

If the market requires a 12 percent rate of return on a stock of this risk and maturity, what is the maximum value for which this share can be expected to trade?

  Automatic investment plan

Share your thoughts on the Automatic Investment Plan (AIP). Does the AIP make sense for most people? Does it make sense for you?

  What is variable cost per unit-cash break-even point unit

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $18.40 per unit, and the variable labor cost is $6.60 per unit. What is the variable cost per unit? Suppose NSI incurs fixed costs of $720,000 during a year in wh..

  Describe how the level and trend of behavior can be used

Describe how the level and trend of behavior can be used to define a pattern of behavior in a graph showing the data from one phase of a single-subject design.

  What is the amount of the companys accounts receivable

Essence of Skunk Fragrances, Ltd., sells 5,800 units of its perfume collection each year at a price per unit of $388. All sales are on credit with terms of 3/10, net 50. The discount is taken by 35 percent of the customers. What is the amount of the ..

  The anticipated aftermarket price

IPO your firm wishes to raise $10 million of net proceeds by going public. The anticipated aftermarket price (after the IPO) is $23 and the firm plans to issue the new shares at a price that is $3.00 below the anticipated aftermarket price.

  Considering a project with an initial fixed asset cost

Gateway Communications is considering a project with an initial fixed asset cost of $2.46 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment is scrapped.

  Identifying the risk and return relationship

To determine how well an investment is doing, it is important to take into account its return and risk. Rational investors seek to obtain the highest amount of return from an investment with the least amount of risk. The CAPM and the arbitrage pricin..

  What bid price per stamp should you submit

Consider a project to supply 60,800,000 postage stamps to the U.S. Postal Service for the next 5 years. You have an idle parcel of land available that cost $760,000 five years ago; if the land were sold today, it would net you $912,000, aftertax. You..

  Unmatched record of investing

How do you reconcile Warren Buffett's unmatched record of investing with the writings of William J. Bernstein (The Four Pillars of Investing) and Jeremy Siegel (Stocks for the Long Run)? Specifically, how is it possible that any one person could out-..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd